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DOE tips: How to ease impact of fuel excise tax hikes

Updated: Jan 23, 2021

With the implementation of the second round of increases in excise taxes imposed on petroleum products, the Department of Energy (DOE) renewed its call for an energy-efficient lifestyle.

“If you are energy-efficient, you will be benefited more by the law,” said Energy Undersecretary Felix William “Wimpy” B. Fuentebella, DOE spokesperson, in a press conference Monday afternoon, January 7, 2019.

He was referring to the Tax Reform for Acceleration and Inclusion (TRAIN) Act, the first tax reform package being implemented by the administration of President Rodrigo R. Duterte.

Implementation of the law on January 1, 2018 was partly blamed for the elevated inflation rate in the third quarter of 2018. TRAIN raised the cap on non-taxable income, but raised the excise taxes on petroleum products, among others.

The excise tax adjustments are implemented in three tranches on January 1 of 2018, 2019 and 2020.

During the press conference Monday, Fuentebella reiterated the DOE’s tips to achieve fuel efficiency.

1. Save fuel by driving at a steady speed. By reducing speed from 120 to 80 kph, tests conducted with popular cars indicated a 25% improvement in fuel economy.

2. Save fuel by anticipating stops. Tests prove that vehicles driven at 60 kph can travel a distance of 650 meters with gradual halts do not consume additional fuel.

3. Save fuel by minimizing vehicle load. Transporting unnecessary weight in your car results in an additional 10% fuel consumption.

4. Save fuel by trying “Ang-cash Tipid” (Carpooling Program). Carpooling is an arrangement whereby several individuals travel

together in a private vehicle. Carpoolers share the costs of gas and often take turns to drive to their common destination.

5. Save fuel by planning your trips, avoiding peak hours and busy roads. During offpeak hours, consider using available MRT and LRT lines.

The DOE came up with the tips as part of its "Save Save Save" campaign for 2019, which it launched recently.

“Let us continue to ‘Save Save Save’ by using our energy wisely. Maximizing our energy ability would enable us to become globally competitive and usher in a new wave of economic prosperity for the country,” Energy Secretary Alfonso G. Cusi said in a statement on Monday.

Four other reform packages under the Comprehensive Tax Reform Program of the Department of Finance have yet to be approved by Congress - the TRABAHO (Tax Reform for Attracting Better and Higher Quality Opportunities) Bill or TRAIN 2 Bill, the proposed Universal Health Care package, the proposed Property Valuation and Taxes reform package, and the Capital Income and Financial Taxes reform package. (Ventures Cebu)

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